Eliminating or Restructuring Credit Card Debt through Bankruptcy

If you are facing serious credit card debt problems, filing for bankruptcy may offer a powerful solution. Carrying a balance on a credit card is usually not a problem; it is when you have too much credit card debt and you can only afford to make the minimum payments that the difficulties start. Credit cards have interest rates that change periodically, fees seem to be hidden sometimes, and the contracts can be difficult to understand. When you add complicated billing procedures to the mix, the financial results can be devastating. Getting a credit card is easy. Getting rid of credit card debt can be very difficult. Fortunately though, filing for bankruptcy can eliminate or restructure your credit card debt.

Chapter 7

When credit card debt is your only type of debt, Chapter 7 bankruptcy can eliminate all the credit card debt you have. Chapter 7 was designed to include unsecured debt. Examples of unsecured debt are utility bills, medical bills, and credit cards. Filing for Chapter 7 bankruptcy will stop creditors from harassing you with any more phone calls and letters in the mail. Your property will be protected and your debt can be discharged. You should come out of the process debt free and much stronger financially. Once you have filed for Chapter 7 bankruptcy, you are automatically protected from garnished wages, law suits, and further actions by the credit card companies.

Chapter 13

Chapter 13 can include credit card debt as well as all other kinds of debt. This type of bankruptcy will allow you to get current on your mortgage payments and can be instrumental in getting the high interest rates reduced. Chapter 13 bankruptcy will allow for your debt to be prioritized and reorganized. This will allow your creditors to eventually get paid in a much more comfortable way for you financially. Proposing a repayment plan will allow you to repay your debt within a 3- to 5-year period.

An initial consultation with a bankruptcy attorney can get you started towards the financial freedom you are desperately seeking. Our law firm offers free initial consultations and because of our experience and knowledge, we know how to get the best possible outcome when it comes to filing for bankruptcy.